Anand Sharma Launches Product to Promote Project Exports from India

In a significant bid to give an impetus to project exports from India the Union Commerce and Industry Minister, Anand Sharma launched ‘Buyer’s Credit Under the NEIA’ a new product that will enable Indian companies to be in a competitive position vis-a-vis peers from other nations in project bids on 6 April, 2011. Sovereign Governments and Government owned entities overseas can use the Buyer’s Credit facility for financing import of projects from India on deferred payment terms. The scheme has been developed by Export-Import Bank of India (EXIM Bank) in conjunction with the Export Credit Guarantee Corporation of India Ltd. (ECGC).

While launching Buyer’s Credit under NEIA, Mr. Sharma said, “Currently, not many project exports are venturing out in overseas markets. In fact, the number of project exporters is dwindling. There is vast scope for diversification of markets for project exports from India and for enhancing project export business into the existing market. Developing countries are the major markets for India’s project exports, and these countries demand medium to long-term credits. With the introduction of this new product, I am sure, many project exporters would be in a position to venture into new markets, and help diversify India’s exports.”

Speaking at the launch, EXIM Bank Chairman and Managing Director, T.C.A. Ranganathan said, “The product with its attractive feature of extending credit directly to overseas buyers of projects from India without recourse to Indian exports, will lead to a substantial rise in exports from India. Credit period would normally be 5 to 8 years, however, longer credit period could be considered in deserving cases.”

Explaining the features of the product ECGC chairman and managing director Arvind Mehta said, “While EXIM Bank will extend the credit facility, it will obtain credit insurance cover under NEIA through ECGC and the insurance premium will be borne by the project exporter.”

[Source: PIB Press Release dated 6 April 2011]